Bitcoin Breakout Toward $10500 Could End Up Trapping Bulls
At present, Bitcoin is consolidating just below 10,000 resistance and is gearing up for a moon shot to all time highs! Or is it? Let's take a look at some charts of the King of Crypto, Bitcoin.
Infamous Swing High
Over the evening Bitcoin reacted positively off a 9500 support, a level it broke out from a few days ago. If you follow me on twitter, I mentioned that Bitcoin was potentially developing a larger pattern given the way it was selling into support over the weekend on low volume. On the chart below I highlight the price action and current resistance and support levels.
Price is approaching resistance for a third time in five trading sessions while posting higher lows. Yes, that is bullish. Right now we may have an ascending triangle developing. The measured target would be approximately 10,766, slightly above resistance.
A weekly, not daily close above resistance would potentially result in further gains. However, not shown on RSI yet is the possibly for a bearish divergence when and if Bitcoin breaks out. Historically, Bitcoin loves to trap bulls on a swing highs in combination with daily bearish divergence. Just take a look at the 2016-2017 bull market.
Do not forget the resistance above. It's nearly 9 months of resistance. With that said, in the short term Bitcoin is bullish and currently consolidating into a continuation pattern. I am currently long in spot and plan on adding on leveraged longs. The plan is to sell at resistance as I do not favor the bulls continuing to press higher beyond 11,000. Bias: Bullish.
Have a great day and talk to you all later this afternoon. Happy trading!
Infamous Swing High
Over the evening Bitcoin reacted positively off a 9500 support, a level it broke out from a few days ago. If you follow me on twitter, I mentioned that Bitcoin was potentially developing a larger pattern given the way it was selling into support over the weekend on low volume. On the chart below I highlight the price action and current resistance and support levels.
Price is approaching resistance for a third time in five trading sessions while posting higher lows. Yes, that is bullish. Right now we may have an ascending triangle developing. The measured target would be approximately 10,766, slightly above resistance.
A weekly, not daily close above resistance would potentially result in further gains. However, not shown on RSI yet is the possibly for a bearish divergence when and if Bitcoin breaks out. Historically, Bitcoin loves to trap bulls on a swing highs in combination with daily bearish divergence. Just take a look at the 2016-2017 bull market.
Do not forget the resistance above. It's nearly 9 months of resistance. With that said, in the short term Bitcoin is bullish and currently consolidating into a continuation pattern. I am currently long in spot and plan on adding on leveraged longs. The plan is to sell at resistance as I do not favor the bulls continuing to press higher beyond 11,000. Bias: Bullish.
Have a great day and talk to you all later this afternoon. Happy trading!
